Category Archives: Finance/Banking

‘Islamic Banks’ – Banks of Riba

By Mujlisul Ulama

IMAAM GHAZAALI (rahmatullah alayh) depicting the villainy of the money-traders (money changers, money lenders and banks), said that assuming there had to be some kind of trade in Jahannum, it would be the trade of the money-traders. This description is an apt depiction of the so-called ‘Islamic’ banks of this era.

Whilst these neo-capitalist ‘Islamic’ banks have dubbed themselves ‘Islamic’, their very life-blood and breathing are Riba. Riba pulsates in every fibre of these banks and in the veins of the men who operate these banks of riba. They are men who are afflicted with the mental disease which the Qur’aan describes as Takhabbutush Shaitaan (mental derangement caused by shaitaan’s touch on the brains of man). Explaining this mental derangement, the Qur’aan Majeed states: “Those who devour riba, do not stand except as one who has been driven to insanity by the touch of shaitaan. That is because they (the bankers) say: ‘Verily, trade is like riba’. But Allah has made halaal trade and He has made riba haraam.” [Baqarah,  Aayat  275]

ISLAMIC?

Their arrogation of the term ‘Islamic’ to portray themselves as holy Muslims of Islamic conscience, is a massive fraud perpetrated to beguile the ignorant and unwary masses. They have succeeded in hoodwinking unwary Muslims in search of loans and products with Islamic-sounding nomenclature for which they have acquired the rubber-stamp approval of hired mercenary scholars (miserable molvis and sheikhs) who are trading the Aayaat of Allah Ta’ala for a despicable worldly price. In the process of perpetrating their activities of sanctioning the haraam riba products of the haraam neo-capitalist ‘Islamic’ banks, these vile scholars and slaves of money have brought themselves within the full scope and glare of the Hadith in which Rasulullah (sallallahu alayhi  wasallam) describes them as ‘swines garlanded with gold and silver’. These mercenary molvis and sheikhs are among the vilest scum which inhabits the earth. This is the comment of Rasulullah (sallallahu alayhi wasallam) who said:

“Soon will there dawn an age when the worst of mankind under the canopy of the sky will be their ulama. From them (these ulama-e-soo’) will emerge fitnah, and the fitnah will rebound on them.”

VAMPIRES

Their riba products are labelled most deceptively with Islamic-sounding terms such as Mushaarakah, Mudhaarabah, Muraabaha, and most audaciously, even Qardh-e-Hasanah (Beuatiful Loan). They are vampires which suck and exploit Muslims who have suffered the calamity of entanglement with their haraam riba products.

All these haraam ‘Islamic’ banks, all over the world, are of the same brand, and all the ‘scholars’ sitting on the stupid ‘shariah boards’ of these neo-capitalist banks, are hirelings and mercenaries who miserably sell the Qur’aan and its Shariah for dollars. The hired scholars are paid tens of thousands of dollars for churning out corrupt and baatil fatwas of jawaaz (verdicts of kosher). The authors of a recent article, ‘Financial Fatwas’ state: “The top Islamic scholars (sic) make as much as $1 million a year determining whether offerings comply with Shariah.” These so-called scholars are downright stupid as far as the Shariah is concerned. With their smattering of textual knowledge they mutilate, distort and destroy the Shariah to produce their verdicts of permissibility solely for gratifying their dollar-lust.

All the major kuffaar banks of the world have a variety of haraam ‘Islamic’ products sanctioned as halaal by the mercenary scholars sitting on the stupid ‘shariah’ boards which banks have formed specifically for manufacturing verdicts of permissibility. Banks never pay tens of thousands of dollars to stupid ‘scholars’ for fatwas of prohibition. They pay handsomely for ‘fatwas of jawaaz’. The rationale of kuffaar and semi-kuffaar ‘Islamic’ banks for establishing ‘shariah’ boards is nothing other than a machine for fabricating fatwas of jawaaz for just any riba product. The job of the hired mercenaries operating in the guise of ‘ulama’ is to dig out obscurities from just any Math-hab to assemble patchwork corrupt fatwas of permissibility to enable the riba-devourers to market their riba products in Muslim countries and in Muslim communities.

There is no difference of any kind between the kuffaar banks and these so-called ‘Islamic’ banks. All banks of whatever hue and persuasion are structured on the primary basis of Riba. But the Muslim capitalist entrepreneurs with the aid of their hired ‘scholars’ of corruption who apply their rubber stamps of approval for the sake of the haraam boodle, have failed to take notice of the ultimatum of War which Allah Ta’ala has issued to them. The Qur’aan Majeed, issuing this ultimatum, says: “And if you do not desist (from plying your riba trade), then take notice of war from Allah and His Rasool.” [Baqarah, Aayat 279]

There is nothing Islamic about these banks. All their products are haraam. Abstention from dealing with them is Waajib. If circumstances constrain dealing with a bank, the lesser of the evils is to deal with non-Muslim banks. Dealing in riba with a Muslim is worse than dealing in riba with a non-Muslim.

Muslims have become so thoroughly impervious to the poisons of riba and haraam food, that they no longer feel any restraints or agitation of conscience when dealing with and devouring haraam. It is essential for our moral and spiritual well-being and safety and success of our Aakhirah to understand the imperative need to abstain from riba. Rasulullah (sallallahu alayhi wasallam) said that riba is a conglomeration of more than 70 major sins, the lightest of which is like fornicating with one’s own mother. This is the type of spiritual filth and carrion which the hired mercenary ulama-e-soo’ of the ‘shariah boards’ of the neo-capitalist ‘Islamic’ banks rubber stamp with their corrupt and baatil fatwas of permissibility for the acquisition of the haraam dollars which the banks pay for their evil fabrications. Whether the product is a so-called mushaarakah or mudhaarabah or muraabahah deal, the net result is worse than the undisguised interest transactions of the kuffaar banks. From the Shariah viewpoint, the contract is haraam. From the mundane perspective, the ‘financial’ charges (i.e. the disguised riba) is more than the undisguised interest which the non-Muslim banks charge.

ISLAMIC HISTORY OF DINAR & DIRHAM

In the beginning the Muslims used gold and silver by weight and the dinar and dirhams that they used were made by the Persians.

The first dated coins that can be assigned to the Muslims are copies of silver dirhams of the Sassanian Yezdigird III, struck during the Khalifate of Uthman, radhiyallahu anhu. These coins differ from the original ones in that an Arabic inscription is found in the obverse margins, normally reading “In the Name of Allah”. Since then the writing in Arabic of the Name of Allah and parts of Qur’an on the coins became a custom in all mintings made by Muslims.

Under what was known as the coin standard of the Khalif Umar Ibn al-Khattab, the weight of 10 dirhams was equivalent to 7 dinars (mithqals)

In the year 75 AH (695 CE) the Khalifah Abdal Malik ordered Al-Hajjaj to mint the first dirhams, thus he established officially the standard of Umar Ibn al-Khattab. In the next year he ordered the dirhams to be minted in all the regions of the Dar al-Islam. He ordered that the coins be stamped with the sentence:  “Allah is Unique, Allah is Eternal”. He ordered the removal of human figures and animals from the coins and that they be replaced with letters.

This command was then carried on throughout all the history of Islam. The dinar and the dirham were both round, and the writing was stamped in concentric circles. Typically on one side it was written the “tahlil” and the “tahmid”, that is, “la ilaha ill’Allah” and “alhamdulillah”; and on the other side was written the name of the Amir and the date. Later on it became common to introduce the blessings on the Prophet, salla’llahu alayhi wa sallam, and sometimes, ayats of the Qur’an.

Gold and silver coins remained official currency until the fall of the Khalifate. Since then, dozens of different paper currencies were made in each of the new postcolonial national states created from the dismemberment of Dar al-Islam.

Allah says in the Qur’an: And amongst the People of the Book there are those who, if you were to entrust them with a treasure (qintar), he would return it to you. And amongst them is he who, if you were to entrust him with a dinar would not return it to you, unless you kept standing over him. [Qur’an (3:75)]

Qadi Abu Bakr Ibn al-Arabi (Rahimahullah), the greatest authority on Qur’ânic Law wrote in his famous “Ahkam al-Qur’an” about this ayat:

“The benefit that can be taken from this is the prohibition of entrusting the People of the Book with goods”. 

Qadi Abu Bakr said: “The question concerning entrusting property is legislated by the text of Qur’an.” This means that the ayat is a legal judgement of absolute validity and of the greatest importance to the deen.

Entrusting wealth to non-Muslims is not allowed, but furthermore, taking a non-Muslim as a partner outside Dar al-Islam (where we stand over them) is extremely restricted, because they might cheat or might use our wealth in forbidden transactions.

Since paper-money is a promise of payment, can it be permitted to trust the issuers while they hold the payment (our property) outside our jurisdiction? History has also demonstrated repeatedly that paper money has been a permanent instrument of default and cheating the Muslims. In addition, Islamic Law does not permit the use of a promise of payment as a medium of exchange.

GOLD AND SILVER ARE THE MOST STABLE CURRENCY THE WORLD HAS EVER SEEN

From the beginning of Islam until today, the value of the Islamic bimetallic currency has remained surprisingly stable in relation to basic consumable goods:

A chicken at the time of the Prophet, salla’llahu alaihi wa sallam, cost one dirham; today, 1,400 years later, a chicken costs approximately one dirham.

In 1,400 years inflation is zero. 

Could we say the same about the dollar or any other paper currency in the last 25 years?

In the long term the bimetallic currency has proved to be the most stable currency the world has ever seen. It has survived, despite all the attempts by governments to transform it into a symbolic currency by imposing a nominal value different from its weight.

RELIABILITY

Gold cannot be inflated by printing more of it; it cannot be devalued by government decree, and unlike paper currency it is an asset which does not depend upon anybody’s promise to pay.

Portability and anonymity of gold are both important, but the most significant fact is that gold is an asset that is no-one else´s liability.

All forms of paper assets: bonds, shares, and even bank deposits, are promises to repay money borrowed. Their value is dependent upon the investor’s belief that the promise will be fulfilled. As junk bonds and the Mexican peso have illustrated, a questionable promise soon loses value.

Gold is not like this. A piece of gold is independent of the financial system, and its worth is underwritten by 5000 years of human experience.

Related Reading: The Reality of The Paper Currency and its Connection to the Dajjalic World Order

Islamic Refutation of Capitalist Economic System

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Economic Justice In Islam

Introduction

Two major economic systems have dominated the world arena in the last 100 years, namely Capitalism and Socialism. Socialism collapsed before the end of the 20th century with a complete failure, and hence will not be a subject in this discussion. Capitalism continues to dominate the entire globe, with different flavors and varieties implemented in different parts of the world. The dissatisfaction of people under socialism, and the accompanying pain and suffering have ended, but been replaced by yet another type of pain and sufferings.

After the collapse of Socialism, Capitalism entered an era of global economy, Globalization, thus impacting most of the people in the world. Therefore, this discussion explores the impact of capitalism on the world and the plight of people in poor and rich countries. On the other hand, it introduces an economic system that the world is yet to explore, understand, and implement. This system is based on Islam.

The Economic System

Economic system is a set of rules and regulations, which define how to distribute the wealth, how to possess it, and how to spend or dispose of it. This system (set of rules) is based upon a particular viewpoint in life, or ideology. Therefore, the economic system of Islam is different from that of Socialism/Communism and that of Capitalism, since each of these systems follows its own ideological viewpoint. For example, the rules of possession and ownership under Capitalism differ from the rules of possession under Socialism, and from those under Islam.

Economic science deals with the production, its improvement, invention and improvement of its means. Economic science, as is the case with other sciences, is universal to all nations and is not associated with a particular ideology. For example, the improvement of production is a technical issue, which is purely scientific, and does not depend on a particular ideological viewpoint.

In addition to the essential understanding of the difference between the economic system and economic science, it is critical to understand the factors of success for any system. The success or failure of an economic system is measured by the direct impact on the humans who live under it. Measures of such impact are the level of security provided and satisfaction of needs. Security and satisfaction of needs are further measured in terms of:

⚫ Food security
⚫ Health security
⚫ Educational security
⚫ Conviction and trust in the economic foundation

In the next section we will address Capitalism as the dominating economic system today, its truth, reality, applicability and consequences.

The Capitalist Economic System

Theoretical Foundation

Capitalism addresses the materialistic side of life; it addresses the human needs and the means of satisfying those needs. It is established on three principles:

1. Relative scarcity of goods in relation to needs.

2. The economic value of a product

3. Pricing role in production, cons consumption, and distribution.

Relative Scarcity:

Man has needs that require satisfaction. Capitalism views the human needs as purely materialistic, such as the need for food, clothing, medicine, education, and security. As for the moral needs such as pride and honor, or spiritual needs such as the sanctification of God’s will, they are not recognized economically, and are therefore disregarded and have no place in economic studies within the capitalist system.

The capitalist looks at the means of satisfaction, that is, the commodities and services, from the viewpoint that they satisfy a need, without taking any other factor into consideration. This system considers, for example, wine as an economically beneficial product because it satisfies the need of some, and perceives the wine maker as service provider. Because wine and wine providers satisfy a need it is considered as having an economic value. Since the need in the capitalist view means a desire, then anything desired, whether it is essential or not essential, beneficial or harmful, it is considered economically beneficial. Products may be considered beneficial from an economic viewpoint even if the public opinion considers them of no benefit, or even harmful. Thus wine, tobacco, drugs, guns, and apples are beneficial things since there are people who desire them. Stocks, interest based loans are also beneficial as long as there is someone who would benefit from their use.

As such, capitalism does not concern itself with the societal values other than materialistic ones. Therefore, the capitalist economic system’s primary function is to supply goods – commodities and services – that is, to provide the means of satisfying man’s needs, irrespective of any other consideration. Capitalism recognizes that man has basic needs, which must be satisfied, and wants which increase in number as man proceeds to a higher level of urbanization.

Relative scarcity foresees the economic problem as the relative shortages of commodities and services towards the unlimited and constantly growing human needs (wants). This basic principal of capitalist economic philosophy provides the basis for the definition of the economic problem under capitalism. In particular, the problem that capitalism attempts to resolve is the satisfaction of an ever growing human needs using insufficient resources and means of satisfaction. This is the essence of relative scarcity of products. An economic dilemma that cannot be resolved no matter how much commodities and services are produced, thus setting unrealistic goal to be achieved.

The inevitable consequence of relative scarcity is that the focal point of a capitalistic society is the increase production of products and services. However, the distribution of the products over the needs is fully dependents upon the individual ability to obtain it. It should be noted that in a capitalistic society the problem is to make the resources available so as to satisfy the needs in a society, but not necessarily the needs of every individual. It is not surprising therefore, that the main focus of the economy under capitalism is the increase in the national production emphasized by the Gross Domestic Products (GDP) and Gross National Products (GNP). Capitalism views economic growth, the increase in GDP and GNP, as the mean of solving the problem of poverty. There are serious flaws in these principals:

1. Correlation between the needs and the means of satisfaction

Under Capitalism, production and distribution are considered to be one major subject. Capitalism holds one view towards the economic science and the economic system without differentiating between them. However, there is a major difference between the economic system and economic science as previously defined. The integration between production of the economic material and the manner of its distribution, is a fundamental fault in the capitalist system which is bound to cause failure in the economy.

2. The human needs are not materialistic only

The reference to the needs, which require satisfaction as being purely materialistic, is wrong, and contradicts the natural reality of human needs. Human beings have moral, spiritual, and ethical needs that require satisfaction, which in turn require commodities or services for their satisfaction.

3. Commodities and services relation to the society

Man is viewed by capitalists as a purely materialistic creature, with no relevance to his spiritual needs, ethical thoughts, and moral objectives. Thus, Capitalism does not give weight to Societal values, except to the materialistic value of the product and its profitability. Cheating in the economic sense is valuable as long as it leads to profitability (Enron and Arthur Anderson). Monopoly is feasible economically, while it can be maintained and supported (Microsoft). Under Capitalism, feeding a poor (wealth distribution) may be done only if it brings a material benefit, such as tax break (non profit organizations). The Capitalist economy focuses on the satisfaction of needs and wants irrespective to the societal values and needs. Societal values and needs are protected as much as it does not limit the individual pursuit of satisfaction.

The exchange of resources and efforts among people creates relationships according to which the structure of the society is formed. Thus, viewing the economic commodity as a mean of fulfilling a need, without caring for the societal values, violates a fundamental rule of society structure. The effect on society should be perceived when considering the economic commodity. Therefore, it is incorrect to consider a thing as beneficial just because there is somebody who wants it, whether it affects the relationships among people or not, and whether it is prohibited or permitted in the belief of the people. Rather things should be considered beneficial if they are really beneficial in respect to what the society should be.

Therefore, it is incorrect to consider alcohol, cannabis, opium, explosives, guns, tobacco and the like as beneficial commodities and to consider them economic commodities just because there is somebody who wants them. Instead, the effect of these economic commodities on the relationships between people in society must be considered when considering the benefit of things i.e. when considering the goods as an economic commodity or not. It is a system fault to look at a product merely as it is, regardless of what the society should be.

4. Poverty of individuals is the main economic problem

Capitalism concentrates on production of wealth more than distribution of wealth. The importance of distribution of wealth to satisfy the needs has become a secondary issue. Therefore, the capitalist economic system main aim is to increase the country’s wealth as a whole, and it strives to achieve the highest possible level of production. The achievement of the highest possible level of satisfaction for the members of society is viewed as a result of increasing the national income, the gross national product. In the capitalist view this can be achieved by raising the level of production in the country, and by enabling individuals to acquire the wealth as they are left free to work and produce.

So the economy does not attempt to satisfy the needs of the individuals and to facilitate the satisfaction of every individual in the community, rather it is focused on raising the level of production and increasing the national income. Only then the distribution of wealth among the members of society occurs, by means of freedom of possession and freedom of work. So it is left to the individuals to acquire what they can of the wealth. Everyone strives to get his/her share of the wealth using whatever means, skills, or tools he/she can afford. Whether the individual is or is not able to satisfy his/her needs is not of concern to the economy, as long as the production of goods continues to grow, and the wealth continues to grow.

This is the major principal of the capitalist economy. It is inherently faulty, and contradicts reality and does not lead to an improvement in the level of livelihood for all individuals, and does not fulfill the basic needs of every individual. It does not resolve the issue of poverty for the individuals, despite the massive increase in the production of goods and services.

The hard fact in this reality is that the needs, which require satisfaction, are individual needs. They are needs of particular people such as George, Maria, Hessian, Muhammad, and the like. The fact that the needs of George, for example, are satisfied does not make Maria any better, unless her needs are also taken care of. So these are needs of individuals and not needs for a group of human beings, a group of nations, or a group of people. Therefore, the economic problem must focus on distributing the means of satisfaction for all the individuals of a society. In other words, the distribution of the funds and benefits must reach every member of the nation or people. It is not sufficient to increase the wealth of the group, irrespective of the plight of every individual.

Consequently, the study of the factors that affect the size of national production differs from the study for satisfying all the basic needs of all individuals personally and completely. The subject of study must be the basic human needs of man, as a human being, and the study of distributing the wealth to the members of society to guarantee the satisfaction of all their basic needs while allowing them to pursue the satisfaction of their wants & luxury needs. This should be the subject of study, and should be undertaken in the first place. Moreover, resolving the poverty of a country does not resolve the problem of poverty for individuals. On the contrary, resolving the poverty of the individuals, and the fair distribution of the wealth of the country, motivates all the people of the country to work towards increasing the national income and resolving poverty of the country. Yet, the study of factors that affect the size of production and the increase of the national income should be discussed within the framework of economic science, rather than in the discussion of the economic system.

5. Scarcity of resources is not the problem and human needs are limited

Capitalism views the economic problem, which faces any society to be the scarcity of commodities and services. It claims that the human needs are steadily increasing, and the products continue to be too scarce to satisfy the growing needs of the people. This view is erroneous and in fact contradicts with reality. This is because the needs, which must be met, are the basic needs of the individual as a human (food, shelter, education, health and clothing), and not the luxuries, although they too are sought. The basic needs of humans are limited, and the resources and products, which they call the commodities and services, are certainly sufficient to satisfy the basic human needs. It is possible to satisfy all of the basic needs of mankind completely.

The economic problem is, in reality, the distribution of these resources and services enabling every individual to satisfy all basic needs completely, and after that helping them to strive for attaining their luxuries. The basic needs of man as a human do not increase. Only the luxurious needs that may increase and vary due to higher urbanization.

Practical Implementation

The discussion of the capitalist economic system leads to the conclusion that the implementation of this system over a period of time should lead to a profound poverty and severe dissatisfaction for any society. In this section, we will examine actual data from the contemporary world that lives under the domination of capitalist economic systems. The data shows without any doubt that the theoretical errors of the major economic principals have led to serious failures that cause huge catastrophic effects on a very large number of the population in the world.

Hunger under capitalism

Growing out of a Harvard School of Public Health conference on hunger, The Physician Task Force on Hunger in America was established in early 1984. The major findings and
conclusions of the Task Force include:

⚫ Hunger is a problem of epidemic proportions across the nation
⚫ Hunger in America is getting worse, not better
⚫ Malnutrition and ill-health are associated with hunger
⚫ is the result of federal government policies
⚫ Present policies are not alleviating hunger in America

Conclusion: Resolution of hunger and poverty require fundamental change at the level of the economic system. Capitalism is designed to produce poverty not to resolve it.

Globalization is the newer form of global capitalism. It is capitalism across nations. Capital flows between nations without serious constraints. Products move from the producing origins to consuming destinations without the feel of borders or national
barriers. Again, the production of resources and wealth increase and multiply. But the impact of the tremendous growth of wealth does not find its way to satisfy the needs of the people. Consider this report on globalization:

“The Scorecard on Globalization 1980-2000: Twenty Years of Diminished Progress”

By Mark Weisbrot, Dean Baker, Egor Kraev and Judy Chen

For economic growth and almost all of the other indicators, the last 20 years have shown a very clear decline in progress as compared with the previous two decades. Among the findings:

Growth:

The fall in economic growth rates was most pronounced and across the board for all groups or countries. The poorest group went from a per capita GDP growth rate of 1.9 percent annually in 1960-80, to a decline of 0.5 percent per year (1980-2000). For the middle group (which includes mostly poor countries), there was a sharp decline from an annual per capita growth rate of 3.6 percent to just less than 1 percent. Over a 20 year period, this represents the difference between doubling income per person,versus increasing it by just 21 percent. The other groups also showed substantial declines in growth rates.

Life Expectancy:

Progress in life expectancy was also reduced for 4 out of the 5 groups of countries, with the exception of the highest group (life expectancy 69-76 years). The sharpest slowdown was in the second to worst group (life expectancy between 44-53 ears)..

Infant and Child Mortality:

Progress in reducing infant mortality was also considerably slower during the period of globalization (1980-1998) than over the previous two decades. The biggest declines in progress were for the middle to worst performing groups. Progress in reducing child mortality (under 5) was also slower for the middle to worst performing groups of countries.

Education and literacy:

Progress in education also slowed during the period of globalization. The rate of growth of primary, secondary, and tertiary (post-secondary) school enrollment was slower for most groups of countries.

Globalization and Inequality Among Nations

According to this “old fashioned – three worlds partition” partition, 76 percent of world population lives in poor countries, 8 lives in middle income countries (defined as countries with per capita income levels between Brazil and Italy), and 16 percent lives in rich countries. Now, if we keep the same income thresholds as implied in the previous division, and look at “true” distribution of people according to their income (regardless of where they live), we find a very similar result: 78 percent of the world population is poor, 11 percent belongs to the middle class, and 11 percent are rich.

Economic health or illness?

The most important index of economic well being under capitalism is the index that monitors the growth of the nation’s health as a whole. DOW Jones, NASDAQ, NIKO, NYSE and other indexes monitor the status of the nation’s most powerful companies. A steady increase of these indexes does not record, reflect or impact the status of the poor in the nation. In fact, the overwhelming data shows that poverty and hunger persist despite the steady increase of economic indexes over the years. The daily report of the economic indexes prove one more time that capitalism is inherently concerned about the growth of products, rather than the satisfaction of the needs of people.

Virtual Wealth

The obsession of product and wealth growth under capitalism has resulted in the removal of the boundaries between the products and services and money. The monetary system existed in the first place to represent the values of products and services in a mobile transferable format. For centuries, gold and silver provided a solid base for measuring the exchange value of products and services. Under the pressure of growing economic product growth, the US capitalist economists canceled Briton Woods treaty which establishes a fixed exchange rate for gold, thus making gold one more commodity. The devastating result of this action is the creation of a new environment where wealth has become virtual wealth. By virtual wealth, I mean the growth of money independent of the growth of products and services. The two major factors that lead to the unlimited growth of money are the interest (usury) and stock investments. Interest allows money to grow without the involvement of product and services. The values of stocks increase or decrease quite often based on circumstances, politics, stability, and other factors not directed to the products and services provided by the stock holding company. The phenomenon of DOT.COM in the 1990’s is a clear example.

Islamic Economic System

Before nudging in the discussion of the economic systems and their impacts on us as
people, I would like to lay down a foundation regarding Islam.

Islamic Sources

Islam is a religion in the sense that it is based on a belief in God (the creator) and in the accountability to God on the Day of Judgment. Islam is also an ideology in the sense that it comprises an ideological foundation and a system of laws for the individual and the society. The Islamic systems cover the political, economic, and social systems. Islam is founded upon the fundamental principal that man, life, and universe are all the creations of the eternal, one and only one God whose main name in Islam is Allah. Allah possesses many attributes, all of which are considered to be eternal and unbounded.

The belief in the existence of God, the Eternal Creator, is a rational process in Islam and an obligation upon the reasoning facility of the human. The belief in God under Islam requires also the belief in all His attributes and functions. Belief in God, as such, requires the belief that there needs to be a channel through which God communicates to the people the means and ways to worship. This channel is what is known as Prophethood and/or the Messenger. Worshipping Allah, under Islam, is the process of following the guidance revealed by God through His Messengers and/or Prophets. Islam considers the belief in the Prophethood an essential principal of Islam. The Prophets include Adam, Ibraheem, Isaac, Moses, Jesus, Muhammad (Peace Be Upon Them All) and many others. Islam, as a religion and ideology, is based entirely on what is revealed to Mohammad (Sallallahu alayhi Wasallam). The revelation to Muhammad (Sallallahu alayhi Wasallam) has two forms. One form is the Quran, which is the actual word of Allah the creator. The wording and the meanings of the verses are written into the Quran exactly as revealed to Muhammad (Sallallahu alayhi Wasallam). The Quran was compiled and completely written during the life of the Messenger Muhammad (Sallallahu alayhi Wasallam). The other format of the revelation is what is known in Arabic as the “Sunnah” of Muhammad (Sallallahu alayhi Wasallam). The Sunnah comprises statements, actions, and endorsement of Muhammad (Sallallahu alayhi Wasallam). The Sunnah is also a revelation from God to Muhammad (Sallallahu alayhi Wasallam), except that the wording of the Sunnah is left to Muhammad (Sallallahu alayhi Wasallam). The Sunnah was compiled and authenticated after the death of the Prophet (Sallallahu alayhi Wasallam) based on written statements and verbal narrations.

For a view to be considered an Islamic one, it has to be validated through the Qur’an and the Sunnah. In this lecture, I will trace the Islamic economic system through the verses of the Qur’an and the statements of the Sunnah.

The View of Islam towards the Economy

Allah created all resources in the world

In the Qur’an, Allah states that all the resources in the world are created by Him, and made usable to the humans:

“It is He who created for you all that exists on earth.” [Al-Baqarah: 29]

“Allah is He Who put at your disposal the sea so that the ships may sail by His command, and so as you may seek His bounty.” [Al-Jathiyah: 12]

“He put at your disposal that which is in the heavens and that which is in the earth, all from Him.” [Al-Jathiyah: 13]

“And We sent down iron, in which is great might, as well as many benefits for mankind.” [Al-Hadid: 25]

“Let man consider his food. How We pour water in showers. Then split the earth in fragments. And cause the grains to grow therein. And grapes and fresh vegetation. And olives and dates, and enclosed gardens, dense with lofty trees. And fruits and grazes. Provision for you and your cattle.” [Surah Abasa: 24-32]

These examples indicate that technical means of production is left to the people. It is apparent that Islam focuses on the economic system (distribution of wealth) and not economic science (technical production).

Economic Policy in Islam

The economic policy is the objective of the laws, which deal with the management of human basic needs (food, shelter, education, health, security). The Islamic economic policy could be understood from the statement of Prophet Muhammad (Sallallahu alayhi wasallam):

“Whom who wakes up secure at home with healthy body and food for his day as if he acquired the whole life”.

The Prophet (Sallallahu alayhi wasallam) also states:

“Allah breaks covenant with any group of people living in a close vicinity, whereby one of them goes to bed while hungry”.

The economic policy in Islam aims at securing the complete satisfaction of all basic needs for every individual, and to enable each individual to purse the satisfaction of their luxuries. Islam looks at every individual as a human being whose basic needs to be satisfied completely, then it looks to him in his capacity as a particular individual, to enable him to satisfy his luxuries as much as possible.

On the other hand, Islam views the individual as part of a whole society that lives according to certain rules and regulations that have to be taken into consideration.Therefore, the purpose of the economic policy in Islam does not address how to raise the standard of living in the country without securing the rights for every individual. Nor is it just to provide the means of satisfaction in the society without setting wealth distribution processes.

The Islamic economic objective is achieved through multiple laws and regulations:

First, defining property ownership as being of three kinds:

1. Individual ownership
2. Public ownership
3. State ownership

The individual can own anything except that of what is public property or prohibited materials such as alcohol or pigs. The public owns all minerals of the earth that are not limited by nature such as gold and silver mines, oil fields, natural gas fields, etc. or all things that are publicly shared such as seas, rivers, roads etc. The state owns certain revenues including land taxation called (Kharaj). Such laws allow for fair distribution of wealth and allow the state to provide public services, security, healthcare, education and others.

Second, Islam prohibits any kind of Usury and interest based loans, on the other hand it encourages partnership in different ways (but not Joint Stock Companies) and interest free loans. Also, Islam prohibits monopoly allowing for true competition and opportunity.

Third, Islam obliges each capable person to work, so as to achieve the basic needs for himself and his dependants.

Fourth, through the unique Islamic social structure based around protecting the family,Islam obliges adult males to support their parents once the father is not able to work or passed away. If there are no one in the family who can support then the State Treasury (Bait ul-Mal) has to step in. As such, Islam requires that the individual secure for himself and his dependants the satisfaction of the basic needs i.e. adequate food, clothing, education, medication and housing. Islam then encourages the individual to secure the luxuries of life as much as he can.

Fifth, Islam prevents the government from the imposition of taxes, except in cases of public disasters such as famine, and where the state funds are unable to cover expenses. Tax then is imposed for a limited time and taken only from the wealthy.
Through the combination of spiritual, social and economic drives, the Islamic economic system achieves the right of livelihood for everyone individually, and facilitates the securing of the luxuries.

To achieve the societal values within which the individual lives, Islam sets certain rules and regulation within which the individual is to behave while striving to secure his/her needs. For example, Islam prohibits the production and consumption of wine by Muslims, and it does not consider it an economic material. Islam prohibits the taking of riba (usury, interest, etc.) and its usage in transactions for everyone who holds Islamic citizenship. It does not consider riba as an economic commodity, whether for Muslims or non-Muslims. Islam considers what the society ought to be when utilizing any property.

Islam did not detach the individual from being human, nor the human being from being a particular individual. Furthermore, Islam does not consider what the society ought to be separate from the issue of securing the satisfaction of the basic needs for every individual, and enabling him/her to satisfy the luxuries. Rather, Islam makes the satisfaction of the needs and what the society ought to be, as two inseparable issues.For the sake of satisfying all the basic needs completely, and to enable satisfaction of the luxuries, the economic commodity should be available to people, and it will not be available to them unless they strive to earn it. Provided that there is a system that protects the basic integrity of the human being. Therefore, Islam urges people to earn,seek the provision and strive without the fear of not finding food to eat or secured home to return back to at the end of the day. Islam made striving to earn the provision compulsory upon Muslims thus creating a productive society.

Allah said:

“So walk in the paths of the earth and eat of His sustenance which He provides.”  [Al-Mulk: 15]

Many Ahadith came to encourage the earning of property. In one Hadith, the Prophet Muhammad _ shook the hand of Sa’ad ibn Muadh (ra) and found his hands to be rough. Sa?ad said: “I dig with the shovel to maintain my family.” The Prophet (sallallahu alayhi wasallam kissed Sa’ad’s hands and said: “(They are) two hands which Allah loves.”

The Prophet (sallallahu alayhi wasallam) said: “Nobody would ever eat food that is better than to eat of his own hands work.”

It was narrated that ‘Umar Ibn Al-Khattab (Radhiyallahu anhu) passed by some people who were consistently in the Mosque reading the Qur’an (meaning not working). He asked who they were. He was told: “They are those who depend upon Allah (Al-Mutawwakiloon).” ‘Umar replied: “No, they are the eaters who eat the people’s properties. Do you want me to describe those who really depend upon Allah (Al-Mutawwakiloon)? He is the person who throws the seeds in the earth and then depends on his Lord The Almighty,
The Exalted (Azza wa jall).”

Thus we find that the verses and the Ahadith encourage striving to seek provision, and working to earn property, just as they encourage the enjoyment of the property and eating of the good things.

Allah said:

“Say: who has forbidden the beautiful gifts of Allah, which He has provided for His servants, and the things, clean and pure, (that He has provided)?” [Al-A’raf: 32]

“O you who believe! Spend of the good things which you have earned, and of that which We bring forth from the earth for you.” [Al-Baqarah: 267]

“O you who believe! Do not prohibit the good things which Allah made halal for you.” [Al-Ma’idah: 87]

These verses, and the like, denote clearly that the divine rules (Ahkam Shari’ah) related to the economy, aim at acquiring property and enjoying good things. So, Islam obliged individuals to earn, and ordered them to enjoy wealth that they earned, so as to achieve economic growth in the country, to satisfy the basic needs of every person, and to enable the satisfaction of his luxuries.

However, the economic progress through motivating every capable individual to work, assigning properties to the State and the investing of public property, all are means to satisfy the needs in the best possible manner. The Messenger of Allah (sallallahu alayhi wasallam) said:

“Whosoever sought the life (matters) legitimately (halal) and decently he will meet Allah with his face as a full moon; and whosoever sought it arrogantly and excessively will meet Allah while He is angry at him.”

The Prophet also said: “Do you have, son of Adam, of your property except that which you ate and consumed, that which you wore and exhausted, and that which you donated and preserved (for yourself in the hearafter)?”

Allah the Supreme said:

“Don’t commit Israaf (spending or going beyond the limits imposed by Islam); surely He (Allah) does not like those who condone Israaf.” [Al-A’raf: 31]

Islam made the aim of owning properties a mean towards satisfying the needs and not for the purpose of boasting. It required managing the economy according to Allah’s orders and made it obligatory. It ordered the Muslims to seek the Hereafter and the pleasure of the creator through what they earn and spend by their own well, without ignoring the goods of this worldly life.

Allah said:

“But seek the abode of the Hereafter in that which Allah has given you, and do not neglect your portion of worldly life, and be kind as Allah has been kind to you, and seek not corruption in the earth.” [Al-Qasas: 77]

Islam secured the observance of the rules in two ways complementing each other. First,Islam motivated the Muslims to adhere to this economic policy through the fear of Allah (Taqwa). Second, Islam legislated laws which the State implements upon the people.

Allah said:

“O you who believe! observe your duty to Allah and give up what remains (due to you) from riba, if you are (in truth) believers.” [Al-Baqarah: 278]

Analysis of the divine rules related to the economy, shows that Islam addresses the
issue of enabling people to utilize wealth. Islam addresses the initial acquisition of wealth, its disposal and its distribution amongst the public. The rules that deal with the economy are thus based on three principles:

1. Initial ownership,
2. Disposal of the ownership, and
3. Distribution of wealth amongst the people.

With regard to the issue of ownership, it belongs to Allah, since He is the Owner of all the Dominion (Malik al-Mulk). Allah stated in the texts that property (Maal) belongs to Him.

Allah said: “And give them from the property of Allah, which He gave to you.” [An-Nur: 33]

Property, therefore, belongs to Allah alone. However, He has put mankind in charge of property, provided them with it, and has given them the right of owning it.
Allah, the Exalted said:

“And spend from what He put you in charge of.”  [Al-Hadid: 7]

“O you who believe! observe your duty to Allah and give up what remains (due)”

“And He has provided you with properties and offspring.”  [Nuh: 12]

Islam also defined three types of ownership (as mentioned earlier):

1. Individual ownership
2. State ownership
3. Public ownership

Through the management of these types of ownership, the economy of both the society and the individuals are completely satisfied.

Zakat and Poverty

Islam has waged a war on poverty by all means. It is the poverty of the individual people that Islam is concerned with, in addition to the poverty of the nation as a whole. Islam has instituted the charity, called in Islam the “Zakat” in a manner that eliminates the poverty altogether. “Zakat” in Islam is a mean of worship. It is one of the pillars of Islam as much as the prayer is. The Islamic system aims at eliminating poverty from the society, rather than managing the poor. One of the companions of the Prophet Mohammad (sallallahu alayhi wasallam) and also one of the Guided Successors of Him, Ali Bin Abi Talib (radhiyallahu anhu) stated:

“If poverty were a man, I would certainly kill him”.

Practically, after few years of implementing Islam in the Islamic society, the notion of poverty was gone altogether. It is narrated in  history that during the era of the Khalifah ‘Umar Bin Abd al-Aziz, there was no single poor person within the Islamic  State who would accept the charity of the “Zakat”.

In a statement by Prophet Mohammad (sallallahu alayhi wasallam), he says:

“Allah breaks covenant with any group of people living in a close vicinity, whereby one of them goes to bed while hungry”.

The Islamic economic system defines the main problem to be solved by the system as the poverty of the individuals. The economic index, thus in the Islamic State, would be the percentage of people who live below poverty line. The economic strength and growth will be measured by the actual well-being of the individuals rather than by the well-being of NASDAQ or DOW JONES. What good would it do to the stomach of a poor person, if the NASDAQ gains or loses points? The Islamic Economic Index is based on the food that is available to each and every human soul in the society.

The Islamic economic system reserves the vital resources of the state for the well-being of the people. One or more companies under Islam for example, will not own the oil fields.The fact that a certain company was able to drill and exploit oil fields in Texas does not give it the right for the oil. The oil exists in fields that go beneath the houses and lands of millions of people. In Islam, the oil belongs to all the people in the state. This is not to be mistaking with socialism that dictates that all means of productions belong to the people. Thus, the Islamic system ensures that the vital resources that belong to the people be actually returned to the people. As such, poverty will never exist in any society that has vital resources.

Usury – Interest – Riba

Islam categorically prohibited the use of money to grow money, i.e., usury. Loans in Islam are given to others and considered a mean of worship. Allah declares that whoever gives a loan (no interest) to another person is indeed giving a loan to Allah. In return, Allah multiplies the reward for the loan giver.

Allah stated:

“Whoever gives a good loan to Allah; and Allah will multiply it to him many folds”

Islamic Economy: Reality

The harsh reality is that Islam as described in the Qur’an and Sunnah has been removed from the real life of the people (Muslims and non-Muslims alike) for almost a century. The Islamic State has been the responsible entity for implementing the Islamic systems during and after the death of the Messenger Mohammad (Sallallahu alayhi wasallam). The Islamic Nation continued to function (with ups and downs) until 1924, when Mustafa Kemal of Turkey with the help of western European capitalists managed to abolish the Ottoman Islamic state (Khilafah). Since then, the Muslims and non-Muslims in the entire world have been living under various secular systems, implementing capitalism in the economic life.

Muslims continued to believe in Islam and practice those parts of Islam that pertain to the individual. However, for Islam to produce the results and objectives set forth in the Qur’an and the Sunnah, the full implementation of Islam is necessary. Without full implementation of Islam, the results could be counter productive. As a result of the absence of Islam, the Muslims resorted to national bonds, ethnic traditions and values. Quite often and after decades of intentional misguiding, the Muslims mix their national values, national aspirations, and methods with those of Islam. The truth of the matter though is that Islam was revealed as a set of laws, regulations and systems to guide and manage the behavior of the society as well as the individuals.

The history of the life of Mohammad (sallallahu alayhi wasallam) shows that the objectives of Islam, the resolutions of Islam, and the values of Islam started to materialize only after the establishment of the Islamic State in Medinah, 13 years after the beginning of Islam. In fact, most of the laws, regulations, and systems were not revealed to Muhammad (sallallahu alayhi wasallam) except after his migration to Medinah where the state was established. The laws of the Zakat, riba (usury), ownership, and wealth distribution were revealed after the state was created.

Conclusions

Islam as a religion and ideology needs to be revisited by both Muslims and non-Muslims alike. It is a religion that should be looked at as a continuation of previous religions and inheritor of them as well. As an ideology, Islam should be viewed as one that provides economic, political, and social systems that do not belong to the ideologies of materialism (both capitalism and socialism). After the fall and collapse of socialism, the people of the world resorted to capitalism as their only alternative. The collapse of capitalism is eminent as a natural consequence to its inability to address the human needs in a satisfactory manner. It is the responsibility and the duty of the people of the world to examine Islam with serious and sincere scrutiny, in order to consider it as the only viable alternative to capitalism.

A JAAHIL’S ‘FATWA’ ON HALAALIFIED RIBA BANKING

BY A U.K. STUDENT OF THE DEEN

The following is a verbatim reproduction of an article by a Deeni Student of the U.K.

“In a classic case of Juhala seeking and obtaining Fatwas from even worse Juhala, the garbage below was written and published by the self-appointed Mufti, Muadh Khan, in response to some queries posed on a website called “Muftisays”. I hope Hazrat is able to make a quick perusal.

THE JAAHILS APPRAISAL

Shariah Problem with Islamic Mortgage:

The problem with Islamic mortgage isn’t what a famous Mufti keeps moaning about. The problem isn’t even what the Scholars of Karachi keep castigating Mufti Taqi Usmani (HA) about!

The Islamic problem is that Islamic mortgage is essentially two contracts rolled into one:

Contract 1: Bank actually owns the property and the deed is in their name.

Contract 2: Bank rents the property to you but it is not a traditional rental agreement and part of your payment goes toward the capital loan (i.e. price of the property).

There are many Scholars who “correctly and rightly” say that you cannot have multiple contracts for the same transaction. There is no need to look beyond this problem into interest or (lack of interest), this entire issue is deeply problematic to begin with.

Sceptics are right in the sense that “Islamic mortgage” is a legal jargon filled transaction designed to get around the traditional “Haram Mortgage” transaction. In reality and in effect, the net transaction is no different. Let me illustrate this to you by an example, suppose you want to borrow money from me to get a car, I can do this in two ways. Suppose that the car costs 5,000 US Dollars here are two ways:

1. Interest Based: I can lend you 5,000 USD and you pay £153.89 for 36 months at the rate of 7%

2. Service Based: I can lend you 5,000 USD BUT I say for my Services you need to pay me back 5,540.20 and you pay £153.89 for 36 months

1 is Haram

2 is not directly Haram as long as we both agree and come up with some legal mumbo-jumbo

Mufti Taqi Usmani (HA) responds:

15 years ago this was put to Mufti Taqi Usmani Saheb (DB) that isn’t Islamic Mortgage (HSBC) just legal mumbo-jumbo to get around the Interest prohibition? Mufti Taqi Usmani Saheb (DB) replied that Islamic Mortgage isn’t perfect but it is for the convenience of Muslims to avoid Haram, it is the best solution we have at this time when we don’t control the financial markets and world economy and there is always room for improvements.

A student of Mufti Taqi Usmani (DB) answered by using this example:

Suppose while driving in UK you want to turn right (or left in US and the example will make sense). You see a Petrol Station (Gas station for US) and instead of going to the traffic lights and turning right properly, you cut across the station and save time and keep on going. This isn’t strictly illegal but it may be not the right behaviour or up to ethical standards of driving.

Islamic Mortgage isn’t “Strictly Haram” but it isn’t agreed upon “Halal” according to all scholars either. This is where Taqleed comes in, I had this argument on Sunniforum with the then (student and now Mufti) Abu Hajira. As a layman Muslim, Allah Ta’ala commands you to make Taqleed so if you choose to follow someone like Mufti Taqi Usmani (HA) and get an Islamic Mortgage or any other (well known and trusted scholar for that matter), there is no sin on you!

This is the bottom line you need to grasp!

YOU WILL NEVER GET ALL THE SCHOLARS TO AGREE ON ISLAMIC BANKING OR ISLAMIC MORTGAGE BECAUSE IT IS AN ISSUE OF IJTEHAAD!

What is in it for the Banks?

Banks are in there to make money and Islamic (banking) or Mortgages offers the following advantages:

1. Statically,  Muslims are financially stable with stable families and pay loans back because it is bred and drummed into Muslims to look after their families so loans to Muslims are less risky.

2. Muslims have close knit families so they are able to pay greater down payment and families often bail those out who are in trouble

3. Muslims are a financial powerhouse in the world and ready to invest

4. MOST IMPORTANT: Banks have to show a reserve against which they are given permission to lend against. Islamic Mortgages means that they have to ring-fence certain money which CANNOT be invested into what you would deem “high risk investments” and this secures their bottom line. So by investing in “Islamic Banking” they are able to leverage this amount TWICE

Muslims are their own worst enemies!

There was a time when HSBC, IBB, Bank of Kuwait etc were all competing in the UK for Muslim businesses. Barclays was also trying to get into the market but BECAUSE Muslims are “stupid” and short-sighted they didn’t kept discussing Fatwaas and market has now narrowed with HSBC and Barclays falling out. This means that you have niche banks in the business and with the lack of competition, customer lose out. Scholars should have sat together and worked out better contracts and agreed with each other for the sake of British Muslims INSTEAD

You have some scholars who have made a killing by earning money WHILE others are crying Haram, Haram and normal Muslims are confused!

WHAT SHOULD HAVE HAPPENED is that Muslims should have made sure that banking scrap and fight for their money (like what happens in the traditional market) and ensured that Islamic Mortgage is diversified as a viable product for everyone. Islamic Banking is just another form of ethical banking and that is why world’s top banks are offering it worldwide.

Islamic Mortgage is a niche product which is limited (or we have made it limited) and the competition is making it more expensive when it was actually cheaper.” (End of the Jaahils appraisal)

The Student Commenting further says:

It seems Muadh Khan, along with those of his ilk, are becoming increasingly flustered with the increasing number of sincere  brothers and sisters who are having to turn eventually to the Majlis, simply because there does not appear to be any other Ulama proclaiming the Haqq loudly, clearly, and without forked tongues. Allah Ta’ala works in wonderful and mysterious ways. The unprecedented Satanism propounded by the Ulama-e-Soo’ of this worst of eras, along with the masses of Ulama who are completely silent in the face of such evil, is actually becoming a major cause for the sincere layman, concerned with the Ummah and the Haqq, having no option but to turn to the Majlis for succour.

Displaying ever-growing desperation in his insidious attempts to discredit the Majlis, Muadh Khan aims and misfires regular potshots, piping the same monotonous tune regarding the Majlis’s “many errors”, whilst never ever specifying exactly what those “many errors” actually are. This appears to be a common hallucination symptom stemming from an acutely allergic reaction to the Haqq suffered by severely diseased Nufoos. The very same diseased individual who hallucinates “many errors” in the Haqq of the Majlis is able to write and publish the lengthiest and detailed defence online of the satanism of Tariq Jameel, whose “many good deeds” include free-mixing with women and shamelessly advertising such free-mixing on camera (including posing side by side with a Kaafir woman whilst holding a small plaque together), extolling past sins in front of the Juhala masses, treating as brothers in Islam those who explicitly brand and treat the Sahabah (radhiyallahu anhum) as Kaafirs, etc. etc. Something is truly amiss with the brain cell of this individual, and those of his ilk. (End of the Article of Haqq)

The Student has adequately taken the moron bogus ‘mufti’ to task. Our further comment will therefore be superfluous.

THE BITCOIN DWINDLE – SATANIST PLOT FOR NEW WORLD ORDER

By The Majlis

A MASSIVE SWINDLE, SCAM AND FRAUD

There have now surfaced an abundance of evidence to confirm that Bitcoin is a massive scam set in motion by U.S.A. conspirators. It is a great step forward to achieve total control of the world’s economy by abolishing real currency and replacing it with a ghost ‘currency’.

BITCOIN IS HARAAM. IT IS HARAAM TO INVEST IN THIS SWINDLE, SCAM AND GAMBLING FRAUD DESIGNED FOR THE ATTAINMENT OF SINISTER MOTIVES.

The following is just one article from numerous others compiled by experts in the field.

FREE-FALL COLLAPSE OF BITCOIN AN ENGINEERED SWINDLE
Just how low will the financial manipulators crash Bitcoin after pushing it to $20,000?

Make no mistake about it, the engineered and ongoing crash of the cryptocurrency Bitcoin was deliberately timed to begin in earnest just before the Christmas holiday. And it has all gone down so soon after Bitcoin hit a record high of $20,000 on December 17th when the perps artificially inflated its price via high-frequency trading, futures manipulation, and other financial engineering tricks.

Is the BITCOIN bubble bursting in real time? The financial manipulators who planned this unparalleled crypto-collapse did so with great stealth and co-ordination.  Who else could have driven the price of Bitcoin into the crypto-market stratosphere so quickly but the international banking syndicate headed by Goldman Sachs?

Crypto-Carnage: CME Bitcoin Futures Halted Limit-Down
Who is really behind this controlled demolition? Everyone ought to know the answer to this question by now: the BANKSTERS.

And here’s a highly authoritative article that was published by The Wall Street Journal which shows when the banksters actually grabbed a hold of the Bitcoin cryptocurrency platform: Goldman a Lead Investor in Funding Round for Bitcoin Startup Circle

Just as Goldman was the chief financial engineer behind the controlled demolition of the stock market during the Fall of 2008, the same banksters are now demolishing Bitcoin.

Bitcoin plummets in highly volatile trading
It ought to be quite obvious to those folks who did not mortgage their homes to join the Bitcoin rush of 2017 that this pre-holiday demolition was executed with purposeful design.

While so many travel to and fro during this holiday season when drivers, flyers and train passengers are already frazzled and frayed by both the Atlanta Airport power outage and Amtrak train derailment onto Washington State’s Interstate 5, distraction and anxiety about traveling is at an all-time high this year.

Why was an Israeli cargo plane the only one permitted to depart Atlanta during the power outage?
AntiFa bragged about pouring concrete on railroad tracks near Tacoma  

Were these distractions deliberately fabricated during the exact time frame when Bitcoin began its precipitous descent?   And were they also meticulously timed to occur between the hectic period between Thanksgiving and Christmas?

This is exactly how and when the banksters perpetrate their biggest heists—using distraction, diversion and misdirection. They have complete control of the USA and can stage any hoax or false flag operation or terrorist attack when and where they so choose to. Hence, the true cause and timing of every major event during December must be carefully considered in order to correctly comprehend this complex financial black operation. Any rapidly evolving psyop as multi-faceted and captivating as the Bitcoin rip-off is assured to have profound and far-reaching repercussions.

What’s the point of this massive controlled demolition? There are actually a number of critical goals that the banksters would like to accomplish. The more salient objectives are as follows:

After conning investors to move their hard-earned money from gold and silver metals into cryptocurrencies, the banksters can wipe out that investment capital for good so that it is no longer available to support the price of gold.

Such a meteoric and devastating crash of Bitcoin will fully convince the legislators that the time is way past due to impose a strict regulatory regime on all cryptos, not just Bitcoin. In this way, the banksters will effectively control them all–forever.

•  The tremendous degree of conversion of U.S. dollars into Bitcoin is serving to remove a prodigious volume of inflationary petrodollars from the global marketplace. The more Bitcoin buying that occurs on dollar-denominated exchanges, the more US dollars will be eliminated that were produced during the successive cycles of quantitative easing.

(The prime suckers and morons ensnared into this massive trap and swindle are the numerous moron multi-billionaires of the Saudi royalty and the other oil-rich morons of the Gulf States, etc. Bitcoin has been created to pirate off and eliminate the trillions of worthless U.S. dollars. –  The Majlis)

A final crash of the largest cryptocurrency like Bitcoin will set the stage for the FED to institute their new “Fedcoin” as a stable alternative to Bitcoin and Litecoin. Such a dubious move will be explained as a means of preventing naked abuse like this: Litecoin Founder Cashes Out, Sells Entire Stake After 9,300% Rally  

The most significant reason for the supernova explosion of Bitcoin and other cryptos is the normalization of cryptocurrencies. Only in this fashion will they become sufficiently acceptable to people everywhere, whereupon a global digital currency can be established before it’s imposed worldwide via manufactured consent. Even The Economist magazine predicted the introduction of a “world currency” in 2018.

There has never been such an enormous swing in the pricing of any commodity or currency, with such great worldwide import, particularly in the span of just 4 days. There is another HUGE war going on in the background between the BRICS-allied nations and those affiliated with the Zio-Anglo-American Axis. In fact, this ongoing global conflict is reaching a crescendo, especially between the Russia-China partnership and their Anglo-American opponents. The colossal collapse in the Bitcoin price is directly attributed to this clash of civilizations, which is taking place out of existential necessity. The BRICS are grimly aware of the planetary destruction that is transpiring because of Bitcoin mining and are determined to stop it.

BITCOIN MINING ON TRACK TO CONSUME ALL OF THE WORLD’S ENERGY BY 2020
If the reader has not figured it out by now, perhaps it’s time to read: BITCOIN BUBBLE: Not if but when it will pop

That Bitcoin will eventually go all the way to $0.00 is practically guaranteed in light of the fact that there’s NO underlying value whatsoever to the cryptocurrency. After all, isn’t that why it’s called a CRYPTOCURRENCY?!

To better understand this highly misunderstood monetary phenomenon, currency investors are encouraged to consult the following exposé: Cryptocurrency Platforms: Owned & Operated by the Banksters

One thing is for sure in the course of this unfolding scam: there will be more than one major sucker’s rally before Bitcoin crashes and burns for good. And it looks like the perps may be setting up the next round of suckers at this very moment.

(Reference: State of the Nation, December 21, 2017)

Cryptocurrency Platforms: Owned & Operated by the Banksters

Digital Currencies Represent the Ultimate Control Mechanism  Over the Global Money Supply

Especially after the fiat currencies crash around the world due to the collapse of the petrodollar will the cryptocurrencies be used as a bridge to establish a new global monetary regime of digital currency.

The comment posted below was written by “Counter Analysis” under the following article:

Evidence Points to Bitcoin Being an NSA-Engineered Psyop to Roll Out One-World Digital Currency  

His analysis is right on target and cannot be disputed.

The power elite would never have permitted the rollout of the various cryptocurrencies unless they exerted complete control over them. And so they do. That they are now traded on the futures market indicates that cryptos are here to stay, as long as they can be totally controlled by the ruling elite. The primary reason for the unparalleled explosion of the BITCOIN market is to get everyone’s attention, which it has. Bitcoin has been around long enough so that investors everywhere have the necessary comfort level to dabble in it. Which many now do.

Regardless of who is really buying Bitcoins, OR SELLING IT SHORT, the cryptocurrency can either continue its supernova run in the firmament of currency investments, or it can disappear overnight should the regulators decide to crack down on it hard.  Which they can do at any time. It’s much more likely that the moneychangers at the very top of the global financial pyramid will keep this new charade going until all paper and coin currency is history, and a global digital currency is firmly in place.

This is the single most important item on the New World Order agenda — stealthily manufacturing consent toward the universal acceptance of a global digital currency. And this globalist goal must be accomplished before their planned One World Government can be established.

Do you see how all the pieces of the NWO puzzle are now conveniently falling into place? (State of the Nation, December 12, 2017)

N.B. The following comment offers an accurate and penetrating analysis of the crypto purpose behind the cryptocurrencies. Everybody is encouraged to pass it around … just in case the supernova does disappear with everyone’s hard-earned money.

Thank you. I’ve been hoping someone would write an expose on this subject. If the deep state were not behind cryptocurrencies, they would be outlawed. Instead they are going to be traded in the futures markets. Nearly half of bitcoin is controlled by a mere 1000 people. This makes it ripe for manipulation like a thinly traded stock, yet I doubt there are any regulations outside of futures exchanges concerning bitcoin manipulation.

I totally agree cryptocurrencies are the approach being taken to acclimate, and disarm people to digital currencies. Whatever features of bitcoin you praise, those features (supposed anonymity, lack of central exchange, etc.) will likely be excluded from the coming digital currency.

Having been previously exposed to digital currencies, a desperate world reeling from banking collapse will embrace a new reset digital currency if it restores their lost wealth, unfreezes credit, gets commerce and food trucks moving again, saves industry (jobs), and provides guaranteed income since many will have lost their jobs. It will be a huge miracle after the intense fear, dread, and panic of banking and currency collapse.

Digital currency enables govt to confiscate or freeze all wealth of anyone at will. Impose negative interest rates that cannot be escaped by bank runs. Makes bank runs impossible. There will be no limit on central bank chicanery. Since all currency remains always in the bank, there will be no limit on fractional reserve banking.

All digital currency will likely be deposited in one central bank clearing house. All other banks and bank branches will not be in the business of holding deposits. They will be in the business of providing the interface with the central bank, and with authorizing credit and lending. So when you buy goods and render payment with your digital currency that resides in your account at the central bank, it transfers to the sellers account at the central bank  and the currency never leaves the central bank for even a split second. Banking collapses are now impossible baring some kind of technological collapse or the wiping out of ledgers, but even then, the central bank will be back up and running as soon as the physical technology backbone is restored. And with block-chain tech, wiped out ledgers could be rebuilt after a hack or temporary bank take-down. Just imagine the identifying information that will be included in the new blockchain that currently does not exist in cryptocurrency block-chain. Identity can be attached to each transaction, ostensibly to provide security for your account, so that even if it is hacked, the damage can be traced and reversed.

The whole world is virtually internet connected either by wire, cell tower, or satellite. Every transaction can be immediately authorized or declined, especially with a redundancy of connections. A combination of block-chain and central  bank ledger can be disseminated to local bank branches and even individuals’ cell phones to prevent an interruption in commerce should communication with the central bank be compromised. Then the block chain and ledger can be matched and resolved with the central bank when the connection is resumed.

I very very strongly suspect this will be the mark of the beast system of buying and selling. It is still uncertain what the “mark” will be. It could be a microchip or a microchip accompanied by a tattoo showing where to scan for the microchip. Whatever it is, it will have to be something that can be rolled out quickly on a massive scale. How close are we. Watch for clues in any development of technology or infrastructure that can enable a rapid massive scale deployment of the new system. It will have to be ready to go in a matter of days to prevent a complete societal breakdown when the current banking system collapses. The new system may already be complete and ready for roll-out. There is no way to be sure, but watch for any clues.

Submitted by “Counter Analysis”

THERE IS NO ISLAMIC BANK

THERE IS NO ISLAMIC BANK IN THE ENTIRE WORLD

BYMufti Zar Wali Khaan (Shaykhut-Tafseer Wal-Hadeeth of Jaami’ah Ahsanul-Uloom Pakistan)

(Translated from Urdu)

‘ULAMA ARE UNANIMOUS THAT THOSE ULAMA WHO ARE LEADING (Misleading – The Majlis) THESE ISLAMIC- BANKS HAVE ERRED.”

(The ‘error’ is egregiously deliberate. The intentional ‘error’ is the effect of the avarice and greed for the tens of thousands of dollars which the international riba banks pay to these miscreant molvis and sheikhs for  issuing fatwas of jawaaz – permissibility – for their haraam riba products – The Majlis)

Some people began to announce that interest is haraam and it is obligatory to abstain from it. (Every jaahil Muslim is aware of the evil of riba. However, this announcement refers to the wiles of those who plotted to capitalize on this Shar’i prohibition by operating  so-called ‘islamic’ banks where RIBA dealings are deceptively affixed with Islamically-sounding designations to dupe the ignorant, and to provide cover for the wealthy, greedy, money-hungry  Muslim capitalists – The Majlis)

The so-called ‘islamic-banks’, fraudsters, deceits and liars who plunder and pillage the Imaan of the Ummah started taking advantage of it (i.e. of Islam’s prohibition of interest to  establish so-called ‘islamic’ banks where the same western riba system  operate, camouflaged with Islamic nomenclature –The Majlis)  Oh! that Al-Meezaan marvellous! Oh! that Al-barakah!  (Al-Meezaan is Mufti Taqi’s riba bank – The Majlis)

But, in reality there is no islaamic-bank in the whole world, not even in the noble Arab lands. There was one Al-Faisal ‘Islamic’ bank regarding which 300 senior Ulama of Makkah informed the King that “we find nothing of Islam in it. On the contrary, it is an institution of sheer interestThen while Al-Faisal bank continued with its existence, the term, Islam was deleted from it’s name so that Islam is not disgraced.

This is theft and trickery because haraam is perpetrated and perpetuated in the name of Islam. Four hundred Fuqaha from Karachi and from  around Pakistan have issued a written statement that in these so-called ‘islamic’ banks there is not even a hundredth part of a percent of Islam. Just as Ghulaam Ahmad Qaadiyaani is not a Nabee, and just as there is nothing of Islam in him, so too, in the same manner the banking system (the so-called ‘islamic’ banking system) is way- extremely far away from Islam. (These banks have no resemblance to Islam and not even have they any semblance of Islam. They are gigantic frauds, heinous agents of shaitaan. They market Rnna as trade. Describing them, the Qur’aan Majeed says: “Those who devour riba do not stand except as one who has been driven to insanity by the touch of shaitaan. That is because they say: ‘Verily, trade is like riba.’, whilst Allah has made halaal trade and made riba haraam.” There in ordered lust for the dollars has maddened them, deranged their brains and constrained them to barter away their Imaan for the boodle. – The Majlis)

Then there are those interest-based banks which people understand to be wrong as there is interest involved in it. There is lesser evil in these interest-based banks in comparison to the so-called ‘islamic’-banks, because when people deal with these interest-based banks they do so with a guilty conscience. They understand that they are embroiling themselves, Thus they acquire the taufeeq to repent. The supplicate: “Yaa ALLAAH! Do forgive us and provide us with such halaal means which are free from even a cent of contamination.” It is stated in the Hadeeth:

“To take even a dirham of interest is like fornicating seventy times with one’s own mother within the Baitullaah.” (This is the satanism which the bank molvis and the bank ‘shariah’ boards halaalize. – The Majlis)

People dealing with these interest-based banks acknowledge their sin and consider themselves to be sinful. But these so-called ‘islamic’-banks are looters in the name of Islam. There is absolutely nothing of Islam in them. Neither in Mezaan bank (of Mufti Taqi) nor in Al-barakah bank nor in any of other myths which are dubbed ‘islamic’-banks.

Ulama are unanimous that those Ulama (Ulama-e-soo’ – The Majlis) who are leading (and misleading – The Majlis) these so-called ‘islaamic banks are in a manifest error. The most senior amongst the Ulama, Maulana Saeemullaah Khaan (Rahmatullah alayh) had held a gathering of Ulama of Pakistan against these banks. The country’s most esteemed Madrasah Jaami’ah Islaamiyah published a book in refutation of these banks. Four hundred Fuqaha and Muftiyaan collectively prepared a written statement in which they categorically declared the nullity of these ‘islamic’ banks. They are null and void even in the remotest sense of Islam.

These banks are blatantly interest institutions. They are sheer interest or even worse than interest. When the heads of these banks were questioned they informed, they conceded their interest dealings. They said: “We give the interest amount to the other donors, we give them the profits too.” (This is the convolution stupidly and irrationally disgorged by those whose brains have been deranged by the spell of Shaitaan. – The Majlis) Then the hoodwink people, deceiving them to accept that this (satanism) is ‘islamic’.

If someone describes a beautiful donkey or a mule to be a mountain bull to some ignorant person, the donkey/mule is not transformed into a mountain bull, and such deception does not become halaal. The donkey and mule will remain a donkey and a mule. Or, if someone places a container of sewerage-gutter water in his fridge and affixes to it a label on which is printed with Maa-uz-Zamzam or Maa-ul-Hayaat or Maa-ush-Shifaa, there then just as this is deceit, so too is the deceit of those claiming that these banks  are  ‘islamic’. They are guilty of the most heinous lies.

Al-Hamdulillaah, Lahore is one of the leading cities of our country in which the Fuqaha and Ulama have assembled at this time. The Ulama from around the country gathered under the leadership of our Buzrugh Mufti Habeebullaah Jaan, and they once again warned the banks that they should not label any of their departments as ‘islamic’ and that they should not resort to lies. They emphasised that there is not a single place in the whole world where the banks are on the way Islamic.

When banks started putting up the banners ‘islam’, calling themselves ‘islamic’ banks, I asked one banker how is this possible? He replied: “it is not so. Our work progresses as people search for something”.

Khasirad-dunyaa wal-aakhirah.

(Destruction for him in the dunyaa and the Aakhirah.)

Thaalika huwal-khusraanum-mubeen.

(That is indeed a manifest destruction.)

(Qur’aan)

Al-Hamdulillaah, our Jaami’ah ‘Arabiyah Ahsanul-‘Uloom has also published a special edition on this subject. Its name is, “So-called islamic-bank – Clarification, Research, Fataawaa.

In the light of the research of the Fuqaha and Ulama, a veritable encyclopaedia has been prepared. Even prior to this, I have discussed the issue and have informed people, and safeguard their Imaan from the fraud of those who are perpetuating the haraam myth and deceiving in the name of Deen. Laa Ilaaha Illallaah!

The need for this clarification) arose as some people were saying that haraam is being perpetuated on a massive level, and even some molvis too are involved in it. So Maulana Saleemullaah Khaan (Rahmatullah alayh) who is their Ustaadh (He is the Ustaadh of Mufti Taqi – The Majlis) said in the same gathering: “They are not speaking the truth in this matter.” This statement of his has been recorded. That program is preserved and is on record. The write-up of that program was also published by Ahsanul-‘Uloom. These forty Fuqaha present at that time in the gathering have endorse it, stating that there is no ‘islamic banking anywhere, and that those so-called ‘islamic’ banks) are in conflict with Islam, and that it is necessary to abstain from them.

Laa Ilaaha Illallaah! What kind of age has dawned? There is dissension amongst Ahle-Haqq also. Those who are consider the flag-bearers of Deen and Ilm have fallen in manifest deviation. (They may have been associated at one time with the Ahl-e-Haqq. But now they have brazenly aligned themselves with Ahl-e-Baatil – The Majlis)

May Allaah Ta’ala safeguard the Imaan and the Khatamah (Maut – the end of life) with Khair and Aafiyah (Aameen)……

“Laa yakhaafoona fillaahi law mata laaim”

(They don’t fear the criticism of the critics (in matters of the Deen) – Qur’aan

Those to whom Allaah Ta’ala bestows such a lofty rank, they fearlessly proclaim such masaa-il (Haqque) so that the Muslims may safeguard their Imaan.

BITCOIN IS NOT CURRENCY

The notion that bitcoin or any other form of crypto ‘currency’ is real currency is baseless. This idea is based on lack of understanding of the issue. Only if the government declares bitcoin to be legal currency, will it assume the status of currency in terms of the Shariah.

Presently it is ignorance to understand that bitcoin is currency. Only if an ordinary illiterate is able to buy a loaf of bread with bitcoin will it be understood that this plot of the Yahood and other sinister forces has attained the status of currency despite the massive fraud and satanism underlying it.

As the position stands currently, bitcoin is a huge gambling and riba conspiracy. It is not trade. It does not involve exchange of material commodity. It is pure gambling.

The contention of ‘secrecy’ ascribed to it is also a massive deception. There is no secrecy and no confidentiality in this system. The sinister forces who are responsible for this new artefact of satanism have lured people into this scam to commit deals and acts which are proscribed in terms of western law and policies. Thus, persons who have made ‘secret’ transfers of funds via this shaitaani, Yahoodi system have been arrested. Whatever is done via this system is recorded by the sinister forces. Be in no doubt and do not labour in darkness and stupidity in this regard.

One Pakistani Sister who had effected transfer of funds via the bitcoin system is currently in jail in New York awaiting trial. If she is found guilty in terms of the unjust kuffaar law, she will spend the rest of her life in the torturous jails of the U.S.A. May Allah Ta’ala have mercy on her.

CURRENTLY BITCOIN IS HARAAM. IT IS NOT CURRENCY. IT IS NOT PERMISSIBLE FOR MUSLIMS TO INDULGE IN THIS GAMBLING RACKET.